Garden Reach Shipbuilders' stock up 5% on deal with German firm for two multi-purpose vessels- Grow Mudra

Garden Reach Shipbuilders' stock up 5% on deal with German firm for two multi-purpose vessels

25 Mar , 2025 By : Debdeep Gupta

Shares of defense PSU Garden Reach Shipbuilders & Engineers Ltd (GRSE) gained 5 percent to Rs 1,790 in morning trade on March 25 after the company announced on March 24 that it has signed a contract with Germany-based Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG for the construction and delivery of the seventh and eighth 7,500 DWT multi-purpose vessels (MPVs).

The agreement, formalized in Hamburg, Germany, marks the completion of an eight-ship series under a previous option agreement between the two firms, the company said in a regulatory filing on March 24.

With this latest deal, GRSE's total order for these vessels remains valued at approximately $108 million, with no changes in financial terms. Each 120-meter-long, 17-meter-wide MPV is designed to transport 7,500 tonnes of cargo, featuring a single cargo hold capable of carrying bulk, general, and project cargo, as well as containers on hatch covers.

Notably, these ships are engineered to accommodate large windmill blades, underlining GRSE’s expertise in crafting specialized vessels for evolving industry needs.

Last week, the company signed a contract with PWD Nagaland to supply eight double-lane modular steel bridges, strengthening connectivity in the state. This expands its impressive portfolio of modular bridge projects, having delivered over 5,800 units to entities such as the Border Roads Organisation (BRO), NHIDCL, state governments, and nations including Bhutan, Nepal, Myanmar, Sri Lanka, and Bangladesh.

On the financial front, GRSE delivered a strong performance in the December quarter, reporting a 37 percent year-on-year jump in revenue to Rs 1,271 crore. Net profit rose 12 percent to Rs 98 crore, while EBITDA surged 55 percent to Rs 75.63 crore, with margins expanding to 5.95 percent from 5.27 percent in the same period last year.

At about 9:45 am, shares of the company were trading at Rs 1,737, higher by 2 percent from the last close on the NSE. Garden Reach Shipbuilders & Engineers' share price rallied almost 28 percent in the past week.